RFM posts net income in H1

Food and beverage firm RFM Corporation reported a 3 percent improvement in net income to R525 million in the first semester of 2018 from the R508 million earned in the same period last year.

In a disclosure to the Philippine Stock Exchange, RFM President and CEO Jose Ma. A. Concepcion III reported a 12 percent growth of revenues for the first six months of 2018 to R6.3 billion from R5.7 billion in the same period of 2017.

The company said it posted topline growth in most businesses including ice cream, flour, pasta, milk and private label.

First half revenues of the ice cream category leader Selecta grew 11 percent year on year while institutional sales including the bakery business expanded with an 8 percent increase.

Sales of RFM’s other flagship brands–Fiesta pasta, Royal pasta, White King mixes and Selecta Milk–also posted a strong 17 percent expansion for the six-month period.

Concepcion noted that “the healthy growth of the branded consumer businesses brought about a 3 percent growth in net income to R525 million despite the headwinds from softening prices of flour and the rise in commodity prices such as wheat, paper and sugar, as well as the peso depreciation.”

For the full year 2018, Concepcion expects RFM to achieve a double-digit growth in revenues and mid to high single-digit income expansion.

He cited that “the growth momentum we are now seeing in the pasta, ice cream and white milk units will help shield RFM from the impact of soaring commodity prices.”

Concepcion also expects the company to continue with its policy of a 50 percent dividend payout of recurring net income, and to pursue its ongoing share buyback program.

“We continue to focus on our core strengths in flour, pasta, ice cream and milk,” Concepcion said adding that “in addition to the big ticket projects of the ice cream and flour segments, we continue to invest in additional warehousing capacity for more efficient supply chain operations.”